Japanese Candlesticks Analysis 12.03.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the asset is about to finish the correction. While testing the resistance area, the pair has formed several reversal patterns, including Harami. At the moment, EURUSD is reversing and may later resume falling towards the support area. In this case, the downside target may be at 1.1850. However, an alternative scenario implies that the price may correct to reach 1.2040 before resuming its decline.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after forming several reversal patterns, such as Hanging Man, while testing the resistance level, USDJPY has reversed and completed the correction. Judging by the previous movements, one may assume that the asset may resume moving upwards. In this case, the upside target is the resistance area at 109.95. At the same time, an opposite scenario implies that the price may fall to return to 107.95 before resuming the ascending tendency.

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, the asset continues trading close to the support level. After forming several reversal patterns there, such as Hammer and Inverted Hammer, EURGBP may reverse and form a slight pullback. In this case, the upside target remains the resistance area at 0.8620. Still, there might be an alternative scenario, according to which the asset may continue falling to reach the downside target at the next support level at 0.8525 without reversing and correcting.